‘Synchronised’ slowdown to hit India, says new IMF chief

WASHINGTON: International Monetary Fund chief Kristalina Georgieva on Tuesday said the world’s largest emerging market economies such as India are experiencing a “more pronounced” effect of “synchronised slowdown” across most of the global economy.

“In 2019, we expect slower growth in nearly 90% of the world. The global economy is now in a synchronised slowdown,” Georgieva said in her curtainraiser speech for the IMF and World Bank’s annual meeting in Washington next week.

The Reserve Bank of India last week lowered India’s GDP growth estimate for the year to 6.1% from the earlier figure of 6.9%. This was the sharpest reduction in projected GDP growth rates by the central bank’s Monetary Policy CommitNEWDELHI: India has slipped 10 notches to the 68th position in the Global Competitiveness Index this year because of a “relatively small” decline in score and the “progress made by several countries”, according to the World Economic

tee (MPC) since its inception in October 2016.

The MPC report also pointed towards a slowdown in private consumption, flow of funds to the commercial sector and economic headwinds from global uncertainties even as it hinted that the Indian economy had bottomed out and a recovery might be Forum’s report on the index released on Wednesday.

According to the report, Singapore has emerged as the most competitive economy of the world. “India performs well when it comes to innovation, well ahead of most emerging economies and on a par with several advanced economies,” it said.

underway.

The Indian economy has been losing momentum for five consecutive quarters, with GDP growth reaching a six-year low of 5% in the June quarter.

Georgieva, in her first speech as managing director of the IMF, said that widespread decelera